Today’s Hottest Manufacturing Trend? Resilience
It’s been said a million times: “The only constant is change.” But it really does bear repeating. Through mind-boggling technological developments, ever-more-frequent natural disasters, shifting (and re-shifting) regulations, and the perennial evolution of consumer demand, business pivots have become second nature in manufacturing.
The consequences of consequences
Manufacturing operations are vast, interconnected systems of people, partners and pressures. That makes market shifts common and adjusting to them complicated. When materials are in short supply or a new fad spikes demand, manufacturers must weigh the causes and effects of every adjustment. And the impacts can be not just far-reaching but — often — hard to predict.
Let’s explore the recalled ingredient scenario noted above. Imagine you’re a food manufacturer, and a key ingredient in your secret seasoning is now unavailable for the foreseeable future. The solution is simple, right? You’ll switch to an alternative. Okay. But say your usual supplier does not carry a suitable substitute; now you need to find a new one.
You also find that the substitute requires stricter temperature control and has a shorter shelf life than the original. You’ll need to ship smaller batches more often, and each one will cost more than you had anticipated. You’ll need new labels reflecting the change, too. And — if there are changes to the end product — perhaps a marketing campaign to match.
While the logistics, marketing and sales teams figure all that out, other departments will need to get to work rethinking production specifics. The recipe and cooking process may need to be reformulated to ensure that the substitution does not impact the product’s taste and texture too much. If cook time changes, facility managers need to rethink cycle times and fulfillment schedules to ensure orders are completed and shipped on time. Which means equipment is being used more than expected. Which might accelerate maintenance timelines.
You get the idea: Each seemingly small change can have a cascading effect throughout the operation, and predicting exactly which obstacles are coming is challenging, to say the least. But just because you can’t be sure what’s ahead doesn’t mean you can’t prepare. With the right teams, tools and technology, manufacturing leaders can give themselves a leg up when the unexpected comes knocking.
Planning your pivots
The idea of contingency planning is familiar to most leaders, as it’s a standard element of risk assessment and mitigation practices. Traditionally, though, these proactive plans have been — like most business decisions — the product of a combination of instinct and history. (Probably more of the former than the latter, given that the accuracy of manually collected records can be dubious at best.) However, changing the ways you monitor and assess operations can help you tilt the scales toward insight and keep up with the market’s demands.
Letting data lead your contingency planning puts facts back at the forefront. But, to do it, manufacturers will need to reimagine their approaches to data collection, storage and management. They will need to implement processes that ensure accuracy, timeliness and contextualization of information they gather.
To that end, many manufacturers have turned to connected systems (full disclosure: like the one my company offers, though you have many options in this space). These tools automate data collection, opening the door for more accurate, effective contingency planning and helping mitigate the chance of inaccurate or redundant data muddying the waters. They give leaders a clear picture of what’s at risk in their operations.
However, changing or updating operation infrastructure isn’t the only path forward. Sometimes — for businesses that are still ironing out their digital transformation priorities, for instance — focusing on data unification can be a powerful first step.
Integrating data from sources throughout the facility and supply chain partners into a single database can be transformative. This can help contextualize operations and highlight all the potential ripple effects of a change, so manufacturers understand each and every facet of the plans they’ve made. Armed with insight into the scenarios most likely to impact production, teams can investigate the details to ensure that the bases that matter most are covered.
Changes to manual monitoring practices may also be beneficial. Leaders may want to revisit their data collection practices to ensure that key production indicators are recorded often enough to alert teams before minor anomalies become major issues. Updating training with information about the importance of timely, regular and accurate recording of key operational variables may also help teams cultivate a culture of resilience within their operations.
No matter which route you take, the key is finding strategies that help you activate backup plans earlier, so you can pump the brakes on production and switch gears quickly. And that’s the secret: Resilience isn’t about ensuring your first plan goes off without a hitch; it’s about taking the surprise out of the pivot.
Preparation, not perfection
The world is full of uncertainty, and no amount of planning will change that. The key to resilient operations isn’t crafting a meticulous plan A. You need to have plans B, C, and D ready to go so you’re sure the first turn is the one you want to take. After all, there’s no way to completely avoid supply chain, production and delivery missteps. Your goal is to change how your team reacts when disaster (or just inconvenience) strikes, and where you end up when the storm has passed.
